National professional membership organization that represents practicing CERTIFIED PUBLIC ACCOUNTANTS (CPAs). The AICPA establishes ethical and auditing standards as well as standards for other services performed by its members. Through ... Read MoreRead More
Substantive tests of financial information which examine relationships among data as a means of obtaining evidence. Such procedures include: (1) comparison of financial information with information of comparable prior periods; ... Read MoreRead More
Assets: Resources owned by a business that have economic value. ... Read MoreRead More
Balance sheet. A financial report that summarizes a company’s Assets (what it owns), Liabilities (what it owes), and Owner or Shareholder Equity (the Net Investment in the business by owners, plus ... Read MoreRead More
Balance Sheet: A financial statement showing assets, liabilities, and equity at a specific point in time. ... Read MoreRead More
Bookkeeping: The process of recording daily financial transactions. ... Read MoreRead More
Break-Even Point: The level of sales where total revenues equal total costs. ... Read MoreRead More
Budget: A financial plan estimating income and expenses over a period. ... Read MoreRead More
Business (or Legal) Entity. The legal structure, or “type”, of a business. Common entities include Sole Proprietor, Partnership, Limited Liability Corp (LLC), S-Corp, and C-Corp. Each entity has a unique ... Read MoreRead More
Combining of two entities. Under the PURCHASE METHOD OF ACCOUNTING, one entity is deemed to acquire another and there is a new basis of accounting for the ASSETS and LIABILITIES ... Read MoreRead More